Despite identifying challenges, the report strikes a fundamentally optimistic tone. London remains a powerful financial centre, second only to New York in deal flow, with unmatched depth in capital markets, professional services and rule of law. Crucially, the report emphasises that the City’s fortunes and the wider UK economy’s fortunes are indelibly linked. The City’s success is a source of competitive advantage for the whole country, not a benefit confined to the Square Mile.
Aster Crawshaw, Senior Partner at Addleshaw Goddard, says:
“The City of London’s strengths remain formidable but cannot be taken for granted. Global competition is intensifying, capital is increasingly mobile and other financial centres are moving quickly in areas such as technology and innovation. This report is a call to action for the City and for the UK as a whole. When the City thrives, the benefits are felt across every region, through jobs, investment and the businesses this ecosystem supports. The choices made over the next decade will determine whether London continues to define its own future or struggles to keep pace with fast-moving rivals.”
The Addleshaw Goddard report asks a simple question: what are the forces that will most shape the City over the next decade and where do the key decisions sit? Key findings include:
Capital and growth
Contributors warn that UK pension funds continue to direct the bulk of their capital abroad rather than backing domestic scale-ups, risking a repeat of British fintech success stories choosing to list in the United States rather than London. The report calls for continued momentum behind reforms such as the Mansion House Accord to redirect UK capital toward UK growth.
International position
The report highlights the City’s continued dependence on international talent and capital, warning that immigration policy and fiscal changes, including to the non-dom regime, risk discouraging the entrepreneurs and investors the City needs. It also calls for a pragmatic, outcomes-based approach to the UK’s relationship with the EU, rejecting “overt decoupling” while preserving regulatory sovereignty.
Innovation and regulation
While praising the UK’s globally respected regulatory framework as a core strength, contributors raised concerns that the pace of regulatory decision-making on stablecoins and tokenisation is falling behind competitor financial centres such as Singapore, Dubai and the US. The report calls for closer alignment between government, regulators and industry to enable responsible innovation at greater pace.
A constructive national story
Contributors were candid that London, and the UK more broadly, lacks a clear, unified narrative about its own strengths, both domestically and internationally. The report calls for a coordinated national effort to correct misconceptions and better communicate the City’s contribution to UK-wide prosperity, including joined up communications between Westminster and the City.
Sarah Egbu, Partner and Head of London Office at Addleshaw Goddard, adds:
“What struck us most in our conversations was the sense of urgency alongside genuine optimism. Nobody we spoke to believes change will be easy, but there is a shared conviction that London has every ingredient needed to lead over the next decade if government, regulators and industry act swiftly and act together. Rather than ask whether London is competitive today, a better question is what needs to be done now to ensure the City of London stays competitive tomorrow?”
Addleshaw Goddard will use the report to foster discussion with clients, policymakers and City constituents. The Future of the City of London: Shaping the Next Decade is available to download here.
